Is Cryptocurrency Safe? Dogecoin, SafeMoon Gain Attention but Experts Warn of Risk

Is Cryptocurrency Safe? Dogecoin, SafeMoon Gain Attention but Experts Warn of Risk

Cryptocurrency has been one of the biggest financial stories of the year so far, with prices soaring amid wider industry acceptance.Payment giants PayPal and Visa have both made steps towards wider adoption of cryptocurrency, while Elon Musk's electric car company Tesla announced customers could even buy a vehicle with Bitcoin.Prices have increased, too. Bitcoin was worth around $30,000 at the start of the year, but reached a high of nearly $65,000 earlier this month. Dogecoin has been another success story, spiking suddenly in price to be worth more than $0.40 earlier this week from less than $0.10 just a week before. And SafeMoon, a new token released only last month, has rapidly become one of the most-viewed around.At the same time, cryptocurrency is widely regarded as a volatile asset, and prices can swing down as sharply and drastically as they swing up. By Friday morning, Dogecoin had halved in value from its Tuesday high.Speaking to Newsweek, experts including crypto investors have explained the risks behind trading the digital assets.

What about that price volatility?Andreas Park, associate professor of finance at the University of Toronto, told Newsweek it is important to differentiate between cryptocurrencies because some have more utility than others. At